The Australian reports on CQS Founder Sir Michael Hintze’s end of year note to investors, in which he warned about the fallout from the slumping oil price. Sir Michael noted that it could have major implications for exposed nations and companies, triggering geopolitical instability.
From The Australian:
In the update overnight to investors in his CQS asset management firm, Mr Hintze said his biggest fear for investment markets next year remained the “contagion risk of a geopolitically significant event” and that the oil price rout and sustainability of the eurozone were the most recent “potholes that could be the trigger.”
They join his list of major worries that includes the worsening of international relations between Russia, Europe and the US, China’s slowdown and its shadow banking issues, plus the rising tension with the Islamic State. “Terrible things have happened and have had little or no effect on financial markets globally,” he said.